Investment Rating - The report maintains an investment rating of "Outperform the Market - A" for the tourism retail industry, indicating a projected investment return that will exceed the CSI 300 Index by 10% or more over the next six months [6]. Core Insights - The Hainan Free Trade Port is steadily advancing its closure operations, focusing on institutional innovation to achieve a higher level of openness to the outside world. The policy design includes "one line open, one line controlled, and free within the island," which aims to maximize the benefits of openness while ensuring safety and efficiency [1]. - The continuous optimization of the duty-free shopping policy for outbound travelers is expected to further stimulate consumption in Hainan. Recent adjustments have expanded the range of duty-free goods and included domestic products, enhancing the shopping experience and increasing the number of beneficiaries [2][3]. - The adjustment of the duty-free policy has already shown positive effects, with a reported shopping amount of 506 million yuan and 72,900 shoppers in the first week after the new policy implementation, reflecting a year-on-year increase of 34.86% and 3.37%, respectively [3]. - The facilitation of personnel exchanges between Hainan and foreign countries has improved, with 85 countries now allowing visa-free entry. This has led to over 2 million inbound and outbound travelers, including more than 1.06 million foreigners, marking a year-on-year growth of 45.1% [4]. Summary by Sections Hainan Free Trade Port Operations - The core mechanism of Hainan's closure operations is designed to integrate high-level trade liberalization with effective management, ensuring a closed-loop management of goods while maximizing the benefits of openness [1]. Duty-Free Policy Adjustments - The recent adjustments to the duty-free shopping policy include the addition of two new categories of goods, the inclusion of six categories of domestic products for tax exemption, and the expansion of eligible beneficiaries to include outbound travelers [2]. Consumption Impact - The initial impact of the new duty-free policy has been significant, with a notable increase in shopping amounts and participation, indicating a positive trend in consumer behavior in Hainan [3]. International Exchange Facilitation - The ongoing optimization of visa policies and the hosting of international events in Hainan are expected to further enhance the flow of people and boost the local economy [4].

Core Insights - The duty-free policy in Hainan is a key element in the construction of the Hainan Free Trade Port and the International Tourism Consumption Center, significantly contributing to the province's economic growth [1][2] Market Growth - The duty-free sales in Hainan have shown a remarkable annual growth rate of nearly 30% from 2018 to 2024, with sales doubling almost every year from 2019 to 2021 [1] - The proportion of domestic consumers purchasing duty-free goods in Hainan has increased from approximately 5% in 2018 to over 20% in 2024 [1] - Hainan's share of the national duty-free market has grown from one-quarter to nearly 70%, while its share of the global duty-free market has increased from 2% to 8.6% [1] Economic Impact - By 2024, over 54 million visitors are expected to enter duty-free shops in Hainan, indicating that one in every two tourists will visit these stores [1] - Duty-free sales account for about one-fifth of the total retail sales of consumer goods in Hainan, and the import value of duty-free goods represents approximately one-seventh of the province's total imports [1] - The industry has directly created over 13,000 jobs in Hainan [1] Consumer Attraction - Hainan has become a popular destination for consumers, with over 900 international brands available and a diverse range of products [2] - More than 50 promotional events have been held this year, with consumer vouchers exceeding 300 million yuan [2] Market Dynamics - Seven operators are currently involved in Hainan's duty-free market, fostering healthy competition that enhances product variety, pricing, service, and consumer experience [2] - The rapid development of the duty-free sector is driving the growth and upgrading of related industries, such as warehousing and logistics, contributing to the modernization of Hainan's commercial circulation system [2] Future Outlook - Hainan aims to continue enhancing its services to ensure that tourists have a satisfying shopping experience [2]

Core Viewpoint - The new duty-free shopping policy in Hainan, effective from November 1, aims to expand product categories and increase purchasing eligibility, potentially leading to sales growth [1][3]. Group 1: Sales Performance - The decline in Hainan's duty-free sales is narrowing, with average daily sales during the Mid-Autumn Festival and National Day holiday showing a year-on-year increase of 5.4%, driven by a rise in average transaction value [2]. Group 2: Policy Changes - The new duty-free policy expands the range of products available, adding categories such as pet supplies, portable musical instruments, drones, and small appliances, increasing the total from 45 to 47 categories [3]. - It also allows domestic products like clothing, ceramics, and coffee to be sold in duty-free shops, with tax exemptions [3]. - The eligibility for duty-free purchases has been broadened to include departing travelers, and local residents can now make unlimited purchases of specified items after leaving the island, with an annual spending cap of 100,000 yuan [3]. Group 3: Future Outlook - The official launch of Hainan's free trade port on December 18, 2025, is expected to enhance tourism infrastructure and attract more visitors, thereby boosting duty-free sales [4]. - The construction of the free trade port may impact the competitive landscape of Hainan's duty-free market and stimulate the tourism sector [4].

Core Viewpoint - Hainan has implemented a traceability management system for duty-free goods to enhance the shopping environment and ensure product quality, thereby strengthening the reputation of the duty-free industry [2][4][6]. Group 1: Traceability System Implementation - The traceability code serves as the unique identifier for duty-free products, affixed to the smallest packaging unit, featuring anti-tampering and anti-damage functions [2][3]. - The traceability management system is a public service platform connected to enterprise information systems and customs supervision systems, allowing duty-free businesses to apply for and activate traceability codes [3][5]. - The system aims to ensure that each product is uniquely identified, linking it to relevant sales and inventory information, thus achieving "one product, one code" [3][4]. Group 2: Consumer Confidence and Market Impact - The introduction of traceability codes has increased consumer confidence in the quality of duty-free products and helps combat counterfeit and proxy purchasing issues [4][6]. - During the recent holiday period, the duty-free market in Hainan showed significant vitality, with logistics and inventory pressures increasing, prompting customs to enhance efficiency through innovative auditing processes [4][6]. - The traceability system has contributed to a rise in tourist satisfaction and has stimulated rapid growth in related industries, with over 200 billion yuan in duty-free shopping amounts and 30 million shoppers since the new policy's implementation [6][7]. Group 3: Technological Integration and Future Developments - Hainan is advancing a "smart + credit" approach in customs supervision, integrating a large data pool and risk feature libraries to facilitate automated and intelligent monitoring [7]. - The establishment of a credit clearance system for foreign trade entities aims to enhance customs convenience and efficiency across the province [7].

Core Viewpoint - China Duty Free Group (601888)(01880) saw a stock increase of over 4%, currently at 65.05 HKD with a trading volume of 259 million HKD, indicating positive market sentiment towards the company amid regulatory and market developments [1] Group 1: Sales Performance - From January to August 2025, Haikou Customs reported a total duty-free sales amount of 20.43 billion CNY, with 3.148 million shoppers and 18.671 million items sold [1] - In August alone, the duty-free sales in Hainan reached approximately 2.105 billion CNY, reflecting a year-on-year decrease of 4.2%, although the decline rate has narrowed compared to previous months [1] Group 2: Market Outlook - According to Industrial Securities, the sales pressure in Hainan is expected to ease due to a gradually lowering base and increased efforts from the government and companies to stimulate sales [1] - The recovery of same-store sales in duty-free outlets and the expansion of new channels in both port and city stores suggest a potential turning point for the company's fundamentals [1] Group 3: Policy Measures - On September 16, the Ministry of Commerce and nine other departments released 19 measures aimed at expanding service consumption, including a series of promotional activities for service consumption [1] - As of the end of August, the number of duty-free shops for outbound tax refunds exceeded 10,000, three times the number at the end of 2024, with a 248% year-on-year increase in the number of tax refund beneficiaries and a 98% increase in tax refund sales from January to August [1]

Core Viewpoint - China Duty Free Group (01880) saw a stock increase of over 4%, reaching HKD 65.05 with a trading volume of HKD 259 million, indicating positive market sentiment towards the company amid recent sales data and government policies [1] Group 1: Sales Data - From January to August 2025, Haikou Customs reported a total duty-free sales amount of CNY 20.43 billion, with 3.148 million shoppers and 18.671 million items sold [1] - In August alone, the duty-free sales in Hainan were approximately CNY 2.105 billion, reflecting a year-on-year decrease of 4.2%, although the decline rate has narrowed compared to previous months [1] Group 2: Market Outlook - According to Industrial Securities, the sales pressure in Hainan is expected to ease due to a gradually lowering base and increased efforts from the government and companies [1] - The recovery of same-store sales in duty-free outlets and the expansion of new channels in both port and city stores suggest a potential turning point for the company's fundamentals [1] Group 3: Government Policies - On September 16, the Ministry of Commerce and nine other departments released 19 measures aimed at expanding service consumption, including a series of promotional activities for service consumption [1] - As of the end of August, the number of duty-free shops for outbound tax refunds exceeded 10,000, tripling the figure from the end of 2024, with a 248% year-on-year increase in the number of tax refund beneficiaries and a 98% growth in tax refund sales from January to August [1]

北京商报讯(记者吴其芸)8月18日，海口海关公布的数据显示，7月海南离岛免税购物金额15.64亿元，同 比下降6.7%；离岛免税购物实际人次29.7万人次，同比下降19.6%。 ...

Core Viewpoint - The official announcement states that the Hainan Free Trade Port will officially start its customs closure on December 18, 2025, as approved by the Central Committee of the Communist Party of China [1] Summary by Relevant Sections Customs Closure Policy - The customs closure refers to establishing Hainan Island as a special customs supervision area, implementing a policy characterized by "freeing up the first line, controlling the second line, and allowing free movement within the island" [3] - The customs closure is aimed at further expanding openness, making Hainan's international connections more convenient [3][10] Tax and Trade Management - A more favorable "zero tariff" policy will be implemented, increasing the proportion of "zero tariff" imported goods from 21% to 74%, allowing tax-free circulation among eligible entities within the island [4][14] - Trade management measures will be relaxed, with open arrangements for certain currently prohibited or restricted imports [4][14] - Ten "second line" ports will be established to facilitate the entry of goods into the mainland, alongside eight existing "first line" ports [4][14] Regulatory Framework - A more efficient and precise regulatory model will be adopted, ensuring low intervention and high efficiency for "zero tariff" goods and relaxed trade management measures [6][14] - Policy documents will be released shortly and will take effect on the day of the island's customs closure [6][14] Economic Development and Investment - Hainan's actual foreign investment has reached 102.5 billion yuan, with an annual growth rate of 14.6%, and the number of newly established foreign enterprises has increased by 43.7% [23] - The four leading industries—tourism, modern services, high-tech industries, and tropical agriculture—have increased their share of the provincial GDP to 67% over five years [25] Infrastructure and Preparedness - The necessary infrastructure for customs closure has been completed and passed national inspections, with a focus on ensuring both openness and effective management [28] - Pressure testing and simulations are being conducted to ensure readiness for the customs closure [28]